Posts Tagged ‘equity’

Why do people join organizations? A seemingly innocuous question that seems like it should be easily answered. To some extent the answer depends on which type of organization you are talking about. For instance, why do people join a certain employer over another? Why do they join various social or religious groups? Why do they join various charitable or other public interest organizations? Why do they join professional organizations? And today, many are puzzling over why people would join various terrorist organizations. You would think there would be endless reasons that drive people to sign up with these various types of entities, but in reality there are some fundamental underlying principles that drive those decisions. Let’s go through some of those fundamental driving forces.

Equity and Rewards: This is the notion that what you get out of the organization is fair for what you put into the organization. If the relationship is employer to employee, a sense of equity develops if you feel you are paid and have benefits that are fair. Pay is indeed a strong driver of satisfaction in the relationship, until people feel they are paid fairly, then it becomes almost non-existent. Equity can also be influenced by giving the person “things” they would not be able to get elsewhere. For instance, people may be willing to accept a lower salary level for longer-term career building experiences, being able to work with a person they admire, enhanced job security, earlier retirements than typical, the ability to travel, and flexibility in working hours, location or the willingness of the organization to adapt to their special needs.

You will almost always find for instance that remote, work-at-home, or part-timers (people who were intentionally looking for part-time work), are more positive than full-timers in a company facility. The reason is because they were given a position that met their unique employment needs. They would see the total equity equation, what they get out of the relationship with respect to what they put in as being “fair”. The exception to this is when the organization treats these groups radically differently than the other “regular” employees, as “second-class employees”. In this case it is as though there are really two different company cultures being applied to the different groups. People are also driven by pure economics and will often accept lower salaries when they simply have no other options available to them.

When the relationship is not employer to employee there are still the equity equations that get solved for each organization that people choose to join. However, instead of money the sense of fairness may be fulfilled by other characteristics of the organization. For instance, a person may volunteer time at a food pantry or homeless shelter because of the fulfillment they receive by doing those activities.

So one aspect of why people join an organization is, in general, when fairness exists around the equity and rewards expectations of joining.

Meaningfulness of the job-itself, type of work or the type of activity: Ever notice how certain professions run in families? There are plenty of firefighters, police, tradespeople, accountants, doctors, lawyers, etc. who can trace back across multiple generations their ancestors who worked in the same professions. Why is that? One reason is knowledge about, and methods for entry into the profession is transmitted to others in the family, or the profession itself, (e.g. undertaker) is part of the family’s business. Another is certainly access and opportunity (sometimes unfair access). One aspect is that children often look up to their parents and will then strive to emulate them. There are other people, those who know what they want to do, or simply find certain kinds of work or experiences inherently interesting. For instance, some go into government or the military as a way to serve to their country, others go into healthcare to serve humanity, others into academia or research to further mankind’s knowledge base. People tend to join organizations that allow them to chase their dreams and to have experiences that fulfill them. People become full of pride in the organization when the mission of the organization, the meaningfulness of what they are doing, what they are accomplishing is held in high regard by themselves and others.

The Brand/Alignment with the Mission: Another factor which influences people to join various organizations is the brand image of the organization. If a brand or the mission is well thought of in someone’s mind that makes joining that organization more attractive. The reasons which makes a brand attractive are varied. For instance, a company can be attractive if it has an outstanding reputation or industry dominating products. A religious organization may be attractive if it aligns with personal belief. A terrorist organization may have an attractive brand if it is seen as righting a wrong, aligned to personal or the beliefs of other family members, is seen as strengthening ones identity, or is viewed as more effective than the other parts of society in which it exists. A civil rights organization attracts people who are interesting in creating just conditions. People join organizations, of all types, when they see it as having an attractive brand image. The marines promote their brand as exclusive. “The few, the proud, the marines.” Not everyone can get into this organization, but if you make the cut, you become part of something special. This sense of exclusivity if you join is very intoxicating for many.

There are of course other factors that come into play, like convenience, a sense of long-term future opportunity, or little to no alternatives that influence why a person would join a specific organization. But one thing that research has shown has no effect, contrary to what you often read, are generational differences. People are mostly looking for very similar things when they voluntarily join an organization regardless of which generation they belong.

There are some separate and distinct factors that increase the likelihood of people leaving an organization and there are a few surprise explanations there as well.